ABSTRACT:
This paper tests how competition in local U.S. banking markets affects the market structure of non-financial sectors. Theory offers competing hypotheses about how competition ought to influence firm entry and access to bank credit by mature firms. The empirical evidence, however, strongly supports the idea that in markets with concentrated banking, potential entrants face greater difficulty gaining access to credit than in markets where banking is more competitive.

Federal Reserve Bank of Chicago. Research Department
and Federal Reserve Bank of Chicago. "Finance as a Barrier to Entry : Bank Competition and Industry Structure in Local U.S. Markets, Working Paper 2004-04" in Working Papers (Federal Reserve Bank of Chicago)
(November 10, 2003).
https://fraser.stlouisfed.org/scribd/?item_id=533683&filepath=/files/docs/historical/frbchi/workingpapers/frbchi_workingpaper_2004-04.pdf, accessed on February 21, 2018.